On Tuesday, the US VIX fear index surged rapidly in the short term, reaching a high of 20.69 points, the highest level in nearly eight weeks, and finally closed at 20.09 points. This upward movement reflects market participants’ cautious attitude towards recent risks.
However, most experts believe that this is not enough to constitute genuine panic. According to ChainCatcher, Jim Carroll, a senior wealth advisor from the US, stated that the current market reaction still falls within the normal risk adjustment phase. Meanwhile, Alex Morris from F/m Investments pointed out that investors’ main coping strategy is to shift towards avoiding stock market risks while increasing allocations to gold and cash positions.
From a risk-trigger perspective, the US VIX needs to break through the key level of 30 to truly trigger widespread market panic. This means that although risk aversion has increased somewhat, there is still a considerable distance before the market reaches a true panic threshold.
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US Fear Index VIX surges to an eight-week high, market risk aversion sentiment significantly increases
On Tuesday, the US VIX fear index surged rapidly in the short term, reaching a high of 20.69 points, the highest level in nearly eight weeks, and finally closed at 20.09 points. This upward movement reflects market participants’ cautious attitude towards recent risks.
However, most experts believe that this is not enough to constitute genuine panic. According to ChainCatcher, Jim Carroll, a senior wealth advisor from the US, stated that the current market reaction still falls within the normal risk adjustment phase. Meanwhile, Alex Morris from F/m Investments pointed out that investors’ main coping strategy is to shift towards avoiding stock market risks while increasing allocations to gold and cash positions.
From a risk-trigger perspective, the US VIX needs to break through the key level of 30 to truly trigger widespread market panic. This means that although risk aversion has increased somewhat, there is still a considerable distance before the market reaches a true panic threshold.